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The 'appropriate technology' explanation of productivity growth differentials: an empirical approach

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Author Info
Los, Bart
Timmer, Marcel P. (Groningen University)

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Abstract

This paper aims at giving empirical content to the recent Basu & Weil (1998) theory of growth, in which localized innovation and differences in speeds of capital intensification can yield several patterns of international convergence and divergence. Using data envelopment analysis techniques, a decomposition is presented in which labor productivity growth is decomposed into growth due to localized innovation, creating spillover potential through investment and assimilation of knowledge spillovers. Regression analysis shows that convergence in the 1970s and divergence in the 1980s were mainly driven by processes of creating spillover potential, but that the other two factors also had significant impacts.

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Paper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number 200361.

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Date of creation: 2003
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Handle: RePEc:dgr:rugggd:200361

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  1. Los, Bart & Verspagen, Bart, 2008. "Localized Innovation, Localized Diffusion and the Environment: An Analysis of CO2 Emission Reductions by Passenger Cars, 2000-2007," UNU-MERIT Working Paper Series 037, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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  2. Enflo, Kerstin & Hjertstrand, Per, 2006. "Relative sources of European regional productivity convergence: A bootstrap frontier approach," Working Papers 2006:17, Lund University, Department of Economics. [Downloadable!]
  3. Szirmai, Adam & Van Dijk, Michiel, 2007. "The Micro-Dynamics of Catch Up in Indonesian Paper Manufacturing: An International Comparison of Plant-Level Performance," UNU-MERIT Working Paper Series 010, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  4. Juliane Brach, 2008. "Constraints to Economic Development and Growth in the Middle East and North Africa," GIGA Working Paper Series 85, GIGA German Institute of Global and Area Studies. [Downloadable!]
  5. Mugera, Amin W. & Langemeier, Michael, 2008. "Labor Productivity Growth And Convergence In The Kansas Farm Sector: A Tripartite Decomposition Using The Dea Approach," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6069, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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